Bosses of a factory in Northumberland have created mayhem after telling workers they will lose their jobs and not receive any redundancy pay.

Bosses of a factory in Northumberland have created mayhem after telling workers they will lose their jobs and not receive any redundancy pay.

More than 130 workers at the Precision Hydraulic Cylinders factory in Cramlington were outraged after being told at a shock meeting yesterday.

Staff were told that, because of the circumstances in which the firm has gone under, they will not get any redundancy money and will only be paid up until the end of the month.

The news came just 24 hours after clothing manufacturer Dewhirst revealed it plans to merge its three sites in Sunderland, scrapping about 380 jobs. Dewhirst has already shut its Leechmore factory and now plans to centre its remaining three sites on one base at Hendon.

Workers at PHC were told to go home and sign on to the dole on the first of June. The announcement comes after a fire destroyed the company's Cascade plant on the Bassington estate on May 12.

Factory worker Darren Taggart, 25, of Kestrel Drive, Ashington, said yesterday: "We were called for a meeting this morning regarding the future of our jobs following the fire a week past Monday.

"We were told that, basically, we'd be paid this month then we could sign on at the dole office. The company has also told us we're not entitled to any redundancy.

"I've worked at the factory for the past nine years and I can't believe it. I did my four-year apprenticeship there and it's the only job I've ever done."

Employee Brian Hildreth, 51, of Avenue Road, Seaton Delaval, said: "I've worked at the company for 25 years and can't believe that it's sending us away with nothing".

Davey Hall, regional secretary of the AEEU, said: "The Cascade management have created bedlam by informing the workers they'll lose their jobs and not get any form of redundancy pay.

"We believe this is illegal and intend to challenge the company by seeking legal advice on behalf of the members we represent."

The company, which refused to comment, makes cylinders for the heavy-plant market and was the subject of a management buy-out 18 months ago.

Dewhirst claimed it was laying off staff as a result of "consumer pressure on prices".